About the Repayment Assistance Plan (RAP) Calculator
The Repayment Assistance Plan (RAP) is the income-driven repayment plan for federal Direct student loans created by Public Law 119-21 and available from July 1, 2026. This calculator applies the statutory formula: a base payment of 1% to 10% of your total adjusted gross income (AGI), depending on which $10,000 income band you fall in, divided by 12, minus $50 a month for each dependent, with a $10 minimum. Borrowers with AGI of $10,000 or less pay the $10 minimum.
Beyond the first payment, it projects your loan month by month using RAP’s two borrower protections: interest your on-time payment does not cover is not charged, and if your payment reduces principal by less than $50 the Department of Education reduces principal further so the total reduction reaches $50 (or the amount you paid, if smaller). It shows how long payoff takes and whether a balance remains to be cancelled after 360 qualifying payments (30 years).
It is meant for borrowers deciding between RAP and a standard plan (new loans made on or after July 1, 2026 can be repaid only under RAP or a standard plan), current borrowers weighing a switch from IBR, and anyone checking a servicer quote. AGI includes your spouse’s income only if you file jointly. Parent PLUS loans and consolidation loans that repaid them are excluded from RAP. The projection grows income at the rate you enter and assumes every payment is on time; your servicer’s figure is the official one.
With the default inputs, the rap monthly payment (year 1) is $200.00. Change any value above to recalculate instantly.
How to use the repayment assistance plan (rap) calculator
- 1Choose your tax filing status; add your spouse’s AGI if you file jointly.
- 2Enter your AGI from your most recent federal tax return and your number of dependents.
- 3Enter the federal loan balance you would repay under RAP and its weighted-average interest rate.
- 4Set an expected yearly income growth rate for the long-term projection.
- 5Read your monthly payment, then check the waived interest, principal match and payoff timeline.
Formula and method
The applicable base payment is a percentage p of your entire AGI, set by band: AGI over $10,000 up to $20,000 pays 1%, over $20,000 up to $30,000 pays 2%, and so on, reaching 10% for AGI over $100,000. AGI of $10,000 or less has a flat $120 base payment. The monthly payment is the base payment ÷ 12 minus $50 for each dependent D, and never less than $10. Because the rate applies to all income, moving into the next band raises the payment on every dollar, not just the dollars above the line.
The projection runs month by month. Interest accrues at the monthly rate and each payment goes to interest first, then principal. If an on-time payment does not cover the month’s interest, the rest is not charged. If the payment cuts principal by less than $50, the government reduces principal by the difference between $50 (or the payment, if smaller) and the amount you paid toward principal. When the balance is below the payment, you pay only what is owed. Anything left after 360 qualifying payments is cancelled. Income is grown each year at your chosen rate, with the payment recalculated annually.
- AGI
- Adjusted gross income (plus spouse’s AGI if filing jointly)
- p
- Base payment percentage, 1%–10% by AGI band
- D
- Number of tax dependents
Worked examples
Single borrower, $60,000 AGI, one dependent, $40,000 at 6.5%
AGI of $60,000 is in the $50,001–$60,000 band, so the base payment is 5% × $60,000 = $3,000 a year, or $250 a month, less $50 for one dependent: $200. Month-one interest on $40,000 at 6.5% is $216.67, so $16.67 is waived and none of the payment reaches principal; the government then reduces principal by the full $50. With 3% yearly raises the loan is paid off in about 14.5 years after roughly $65,618 of payments, versus $454.19 a month on the 10-year standard plan.
Married filing jointly, $75,000 combined AGI, two dependents
Filing jointly, combined AGI is $75,000, which falls in the 7% band: $75,000 × 7% ÷ 12 = $437.50, less $100 for two dependents = $337.50. Month-one interest on $60,000 at 6% is $300, so $37.50 goes to principal and the government adds a $12.50 match to bring the principal reduction to $50.
Low income: $18,000 AGI with three dependents
At $18,000 AGI the base payment is 1%, or $15 a month; three dependents would push it below zero, so the $10 minimum applies. The $150 of monthly interest is mostly waived and principal falls by $10 each month. With flat income, 360 payments total $3,600 and the remaining $26,400 is cancelled.
Frequently asked questions
When does the Repayment Assistance Plan start?+
The law requires the Department of Education to offer RAP beginning July 1, 2026. Federal Direct loans made on or after that date can be repaid only under RAP or a standard plan, while existing borrowers can switch to RAP or stay on IBR.
How is the RAP payment calculated?+
Your whole AGI is multiplied by a rate from 1% to 10% depending on its $10,000 band (10% above $100,000), divided by 12, then reduced by $50 per dependent. The payment is never less than $10, and AGI of $10,000 or less pays the $10 minimum.
What happens to interest my RAP payment does not cover?+
If you make your payment on time and it is smaller than the interest that accrued that month, the unpaid interest is not charged. Your balance therefore never grows on RAP as long as you pay on time.
What is the RAP matching principal payment?+
When an on-time payment reduces your principal by less than $50, the government reduces principal by the shortfall, up to $50 or the amount you paid if that is smaller. This guarantees your balance falls a little each month.
When is the remaining balance forgiven under RAP?+
Any balance left after 360 qualifying monthly payments (30 years) is cancelled. Qualifying payments include on-time RAP payments and certain payments under other plans. Cancelled debt may count as taxable income after 2025 under current federal tax law.
Does my spouse’s income count under RAP?+
Only if you file a joint federal return. The statute defines AGI as yours plus your spouse’s, except that a married borrower filing separately uses only their own AGI and counts only the dependents claimed on that return.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.